![Mitsubishi Company: Participation in PAK Lithium Undertaking in Canada Mitsubishi Company: Participation in PAK Lithium Undertaking in Canada](https://tasnimpub.com/wp-content/uploads/https://www.mitsubishicorp.com/jp/en/pr/archive/2024/files/0000053204_img2.png)
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Mitsubishi Company (“MC”) is happy to announce that it has entered right into a binding settlement with Frontier Lithium Inc. (“Frontier”), a Canadian lithium mining firm, to kind a brand new three way partnership firm (“JV”) devoted to creating the PAK Lithium Undertaking (“Undertaking”) situated in Ontario, Canada
Mitsubishi Company (“MC”) is happy to announce that it has entered right into a binding settlement with Frontier Lithium Inc. (“Frontier”), a Canadian lithium mining firm, to kind a brand new three way partnership firm (“JV”) devoted to creating the PAK Lithium Undertaking (“Undertaking”) situated in Ontario, Canada. MC will purchase a 7.5% fairness curiosity within the JV in trade for money issues of 25 million CAD (“Strategic Funding”). MC additionally obtains the best to extend its fairness share to 25%.
Because the first drill program that indicated vital lithium potential in 2013, Frontier has continued to conduct exploration actions to extend its useful resource steadily, and because of this, the Undertaking is anticipated to have a mine lifetime of over 20 years, with annual manufacturing of roughly 20Kt of lithium carbonate equal (equating to nearly 300K electrical autos).
MC has selected this Strategic Funding as its first ever funding in a lithium mine with the view that the Undertaking boasts among the many largest and the very best grade lithium sources in North America. Additionally, Ontario is an lively mining jurisdiction that has ample hydroelectric energy, enabling the Undertaking to serve the North American electrical autos market whereas minimizing environmental affect. Moreover, future drilling packages within the considerably giant land place that Frontier owns might result in unveiling additional useful resource potential.
The proceeds from the Strategic Funding will probably be primarily used to finish the feasibility examine of the Undertaking and to organize for acquiring permits required previous to the graduation of building.
MC will contribute to the event of the Undertaking by sharing the intensive information and experience within the mining enterprise that it has amassed over the previous a long time. The Undertaking goals to start manufacturing of premium spodumene concentrates by 2027 and the manufacturing of battery grade chemical substances by 2030.
Lithium is important for electrification and de-carbonization, as it’s a crucial uncooked materials utilized in manufacturing lithium-ion batteries for electrical autos. Whereas mid-to-long-term demand for lithium is anticipated to develop strongly with the strong demand progress for batteries, there are fears that provide progress might not be capable of sustain with such demand. MC believes that the Undertaking can play an necessary function in addressing these supply-side issues.
Within the “Midterm Company Technique 2024 – Creating MC Shared Worth” launched in Could 2022, MC outlined its progress technique of accelerating power transformation, together with funding in lithium sources. Past this Strategic Funding, MC stays dedicated to additional securing a steady and sustainable provide of battery minerals.
■ Transaction Scheme
■ Overview of Frontier Lithium Inc
Firm Identify |
Frontier Lithium Inc. |
Headquarter |
Sudbury Canada |
Institution |
1995(renamed from Houston Lake Mining Inc. in 2016) |
CEO |
Trevor Walker |
Inventory Change |
Toronto Enterprise Inventory Change |
■ Overview of PAK Lithium Undertaking *
Proprietor |
Frontier Lithium Inc. 100% |
Mining Methodology |
Open Pit |
Useful resource |
58.5Mt (1.50percentLi2O) |
Manufacturing Begin |
Round 2027 |
Annual Manufacturing |
20,000t LCE (equating to nearly 300K electrical autos) |
Lifetime of Mine |
Not lower than 20 years |
SOURCE: Mitsubishi Company
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